Including impairment loss reversals of €13 million, net impairment losses totaling €50 million were recognized on property, plant and equipment in the Pharmaceuticals (€23 million), Consumer Health (€8 million), and Crop Science (€25 million) segments, as well as All Other Segments (€1 million), while impairment loss reversals were recognized for Covestro (€7 million).

In 2017, borrowing costs of €31 million (2016: €31 million) were capitalized as components of the cost of acquisition or construction of qualifying assets, applying an average interest rate of 2.5% (2016: 2.5%).

Capitalized property, plant and equipment included assets with a total net value of €231 million (2016: €471 million) held under finance leases. The cost of acquisition or construction of these assets as of the closing date totaled €368 million (2016: €867 million). They comprised buildings with a carrying amount of €98 million (2016: €146 million), plant installations and machinery with a carrying amount of €75 million (2016: €191 million), and other property, plant and equipment with a carrying amount of €58 million (2016: €134 million). For information on the liabilities arising from finance leases, see Note “Financial Liabilities”.

In 2017, rental payments of €385 million (2016: €346 million), excluding Covestro, were made for assets held under operating leases as defined in IAS 17 (Leases).

Lease payments of €1 million are expected to be received in 2018 from operating leases – as defined in IAS 17 (Leases) – pertaining to property, plant and equipment, excluding the investment property stated below. Lease payments totaling €1 million are expected to be received between 2019 and 2022 and lease payments totaling €0 million after 2022.

Investment property

The fair values of investment property are mainly determined using the income approach based on internal valuations for buildings and developed sites, and using the market comparison approach for undeveloped sites.

The total carrying amount of investment property as of December 31, 2017, was €97 million (December 31, 2016: €136 million). The fair value of this property was €336 million (2016: €507 million). The rental income from investment property was €14 million (2016: €11 million), and the operating expenses directly allocable to this property amounted to €4 million (2016: €5 million). A further amount of €1 million (2016: €1 million) in operating expenses was directly allocable to investment property from which no rental income was derived.